Spy Optic’s parent company, Orange 21, has applied to transfer its listing to the Nasdaq Capital Market, after receiving a notice from Nasdaq that it no longer met requirements to be listed on its Global Market ticker. For the larger market, a company must maintain $10 million in equity. Orange 21 felt that it was more beneficial to the company to transfer its listing than to try to maintain its Global Market listing. The company said the transfer could result in some minor savings.
For the full 2008 financial year, net sales of Orange 21 grew by 2 percent to $47.3 million. In the first six months, consolidated net sales grew by 20 percent to $25.5 million, but fell by 9 percent in the third quarter and by 19 percent in the fourth one. The company said the decreases in the second half were due to the slumping economy and customers’ trimming discretionary spending.
The gross profit for the year fell by 7 percent to $21.3 million because of the euro’s strengthening against the dollar in the first half of 2008 and increased discounting and a drop in sales in the second half.
In January, the company allowed shareholders to buy stock at 80 cents per share, which raised $2.4 million for Orange 21. In a conference call, the chief executive, Stone Douglass, said the company has recently allocated unsubscribed rights to additional investors, resulting in about $500,000 of additional investment. It also cut the pay of its American workers by 10 percent, saving about $75,000 per quarter. Another $500,000 was saved by arranging a compensated leave program for its Italian workers for 13 weeks.
